Home / Knowledge / News / Textiles / Specialty chemicals producer Lanxess Q2 sales decline 12%
Specialty chemicals producer Lanxess Q2 sales decline 12%
06
Aug '13
LANXESS expects the business year 2013 to remain challenging after the German specialty chemicals company posted a decline in second quarter sales and earnings.

Highlights:

- Q2 sales EUR 2.1 billion, down 12 percent
- Q2 EBITDA pre exceptionals EUR 198 million, down 45 percent
- Q2 net income EUR 9 million, down 95 percent
- Outlook for 2013: EUR 700-800 million EBITDA pre
- 2014 EBITDA pre target of EUR 1.4 billion no longer realistic
- Strategy update underway, results in September

Compared to the strong second quarter of the previous year, sales were down by roughly 12 percent to EUR 2.1 billion in the second quarter of 2013. EBITDA pre exceptionals declined by 45 percent against the prior-year period to EUR 198 million and was in the middle of the guided range of EUR 174-220 million. Net income declined by 95 percent year-on-year to EUR 9 million.

In contrast to expectations in May, LANXESS does not see an improvement in business conditions in the second half of the year. Customers continue to destock their inventories, noticeably in Asia, and overall consumer sentiment remains weak.

For the year 2013, the company has substantiated its outlook given in May of EBITDA pre exceptionals of less than EUR one billion. LANXESS now anticipates EBITDA pre exceptionals of EUR 700-800 million, excluding potential inventory devaluations.

“The first half of 2013 does not meet our own high standards,” said LANXESS’ Chairman of the Board of Management Axel C. Heitmann. “Trading conditions for our businesses remain tough and the fragile sentiment in Europe is now evident in other markets that are important for us, such as China and Brazil.”

Against the background of the continuing weak demand in the current business year, the target of EUR 1.4 billion EBITDA pre exceptionals in 2014 is no longer realistic, even taking into account an expected upturn in demand next year.

Despite the difficult conditions, LANXESS is maintaining its mid-term target of EUR 1.8 billion EBITDA pre exceptionals in 2018, although it has become more challenging to reach it.

“The megatrends, above all mobility and agriculture, still remain intact and the growth markets will see better times again. That is why we believe we have in principle the right set-up,” said Heitmann.

Strategy update

LANXESS will continue with its proven counter-measures of flexible asset management and strict cost discipline in the coming months. In addition, this year’s capital expenditure budget has already been reduced to EUR 600 million. Important steps to improve the long-term competitiveness of the Rubber Chemicals business unit have already been taken in the second quarter.

“We have proven successfully in the past that we are able to handle difficult trading conditions. We are currently working on an update of our strategy as well as further measures. These include short-term as well as long-term cost savings, additional efficiency improvements and structural changes. We will present results in mid-September,” said Heitmann.

Click here to read full results 

LANXESS


Must ReadView All

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X